A Retrospective of Montreal’s 2017 Real Estate Market
2017 was one of the busiest years in real estate in Montreal, as the numbers attest:
- 11% increase in total sales comparatively to 2016. More specifically, there was a 16% growth of condo sales, and a spectacular 25% growth of $500 000+ property sales.
- 17% decrease on the supply side in comparison to 2016. This represents some of the lowest property inventory for sale in Montreal in the last 5 years. This reality puts sellers at an advantage in the classic supply vs. demand dynamic.
- 20% increase in the number of rented condos in comparison to 2016. The rental market is also experiencing growth. The demand is high, more and more investors are seizing this opportunity to grow their real estate portfolios.
Why is the market doing so well?
- 117,000 jobs were created in the last 24 months in metropolitan Montreal, most of which are full time. The unemployment rate in the entire country is exceptionally low. The increase in working people leads to accelerated economic growth, and engagement. People are consuming and investing more. This is reflected in the overall consumer confidence index. (Statistics Canada)
- Overall consumer confidence index increase, the highest in 15 years. This demonstrates the positive consumer outlook on the future of the economy. The consumer is therefore more inclined to pursue more aggressive investment. An increase in the consumer confidence index is usually a sign of an economic growth acceleration trend, already building momentum. (Conference Board of Canada)
- What about the foreign buyers? Contrary to popular conceptions and occasional media hype, foreign buyers currently represent less than 2% of total buyers. (CMHL)
What to expect in 2018?
The Quebec Federation of Real Estate Boards is anticipating an exceptional year for the real estate market in the greater Montreal region:
- 5% increase in the total residential sales in metropolitan Montreal
- 5% increase in the average price of single family homes in metropolitan Montreal
- 3% increase in the average price of condos in metropolitan Montreal
La seule prévision « négative » à l’horizon, une hausse du taux d’intérêt hypothécaire de 0.25 à 0.5 point de pourcentage. Il s’agit d’un ajustement normal et nécessaire afin de réguler le marché économique lorsque celui-ci s’accélère.
Another growth year ahead!
Fédération des Chambres Immobilières du Québec
Le Conference Board du Canada
Société canadienne d’hypothèques et de logement